Thursday, 29 October 2026

The 2027 State Budget (Orçamento do Estado) passed its initial general vote in parliament with support from the governing Social Democratic Party (Partido Social Democrata or PSD) and CDS-People's Party (CDS-Partido Popular). The Socialist Party (Partido Socialista or PS) abstained alongside PAN and JPP, allowing the legislation to proceed to committee review despite opposition from other parties. Following the ten-hour debate, PS leader José Luís Carneiro criticised the governing coalition for what he described as aggressive attacks against socialists who made the budget's passage possible.

Joaquim Morgado, the deputy secretary-general handling electoral organisation at the Ministry of Internal Administration (Ministério da Administração Interna or MAI), has resigned to take a post in the Ministry of Education. The move marks the third high-level departure from the department within two weeks, following the dismissal of secretary-general Ricardo Carrilho by Internal Administration Minister Luís Neves. The vacancies arrive while the ministry oversees preparations for upcoming municipal elections and digital voting upgrades.

Officers from the Public Security Police (Polícia de Segurança Pública or PSP) and the National Republican Guard (Guarda Nacional Republicana or GNR) are marching in Lisbon today to demand salary increases and career restructuring. Organised by major police unions ASPP/PSP and APG/GNR, the protest heads to the official residence of Prime Minister Luís Montenegro. Union leaders stated that months of discussions with the government have produced no formal wage proposals.

President of the Republic António José Seguro opened consultations at the Belém Palace (Palácio de Belém) with the ten political parties represented in parliament to discuss social cohesion and housing. The meetings follow an appeal by the head of state for cross-party cooperation between the government and opposition to pass urgent housing measures. Seguro has also convened the Council of State (Conselho de Estado) to deliberate on the growing social strain.

Parliament approved the 2027 State Budget (Orçamento do Estado) proposal on Wednesday at its first reading, after the Socialist Party (Partido Socialista or PS) abstained to avoid a political crisis. The bill passed with 91 votes from the governing Social Democratic Party (Partido Social Democrata or PSD) and CDS-People's Party (CDS-Partido Popular or CDS-PP), while 79 lawmakers from Chega, the Liberal Initiative (Iniciativa Liberal), and left-wing parties voted against.

Socialist leader José Luís Carneiro confirmed his party allowed the measure to advance while demanding amendments during the committee stage. The PS has urged the government to transfer vacant public properties held by the Institute for Housing and Urban Rehabilitation (Instituto da Habitação e da Reabilitação Urbana or IHRU) directly to municipalities, and to abandon proposed tenancy reforms that the opposition argues reduce tenant stability.

The budget targets a surplus of 0.1 percent of gross domestic product and 2.1 percent economic growth in 2027, alongside corporate tax cuts from 19 percent to 18 percent. The final global vote is scheduled for 24 November.

Parliament approved a measure doubling personal income tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) deductions for families from the third child onwards. Lawmakers also voted to increase support under the Child Guarantee (Garantia para a Infância) to match the larger tax allowances for dependents. The change aims to provide targeted financial relief for larger households facing increased living costs.

Porto City Council will propose multiplying the municipal property tax (Imposto Municipal sobre Imóveis or IMI) by ten for vacant properties located in the city's historic centre. Porto Mayor Pedro Duarte announced the plan as part of the upcoming 2027 municipal budget to encourage owners to bring disused homes to the rental market. Duarte also noted that the city has collected €33 million in developer compensation since 2021 from projects that chose not to build required affordable housing.

The interest rate on Portuguese savings certificates (Certificados de Aforro) will remain at 2.5 percent in November for the third consecutive month. The return matches the legal ceiling established for the sovereign retail debt instrument, which remains a favoured savings product for Portuguese households. However, roughly thirty retail bank term deposits now offer higher rates than the state-backed alternative.

Lisbon Mayor Carlos Moedas labelled statements made by transport insurer Fidelidade “shameful” and “deplorable” in a dispute over compensation for a fatal Glória funicular (Elevador da Glória) derailment. Fidelidade denied that it is refusing payouts to victims and families, but defended court filings challenging a €125,000 wrongful death claim as excessive based on standard legal valuation criteria for human life. The insurer stated that it has already paid or assumed liability for initial expenses and remains open to settling fair compensation.

The Portuguese government will offer subsidies of up to 80 percent for low-income households purchasing electric vehicles, Environment and Energy Minister Maria da Graça Carvalho announced during parliamentary budget debates. The programme will support the purchase of around 20,000 electric vehicles under the 2027 State Budget (Orçamento do Estado). The government also plans to maintain existing electric vehicle purchase incentives for the general public and fund 9,000 vehicles for micro-enterprises.

Lisbon City Council approved an agreement with the Alta de Lisboa Management Society (Sociedade Gestora da Alta de Lisboa or SGAL) to retain municipal control of land capable of hosting more than 70,000 square metres of construction. The executive aims to reserve the plots for municipal housing projects amid intense political debates over public property. The agreement passed despite friction with opposition parties, who separately introduced motions to halt the scheduled auction of ten other municipal parcels.

Portuguese bank Millennium BCP reported a net profit of €873.7 million for the first nine months of the year, representing a 12.6 percent increase compared to the same period in 2025. Chief Executive Miguel Maya described the economic backdrop as challenging, but noted that domestic operations generated €727.9 million in earnings while non-performing loans in Poland declined. Customer loans across the group grew 7.8 percent to €66.2 billion.

Average electricity prices paid by households in Portugal's liberalised energy market have stayed above regulated tariffs since mid-2023, according to the Energy Services Regulatory Authority (Entidade Reguladora dos Serviços Energéticos or ERSE). The price gap between the two markets widened to its highest point in the third quarter of 2024 before narrowing throughout 2025. ERSE monitors consumer tariffs across both systems as households retain the legal right to switch back to regulated supply contracts.

Pending cases in Portuguese tax courts fell by 54 percent, according to a new report on the country's tax justice system, though systemic delays persist. Legal disputes in traditional administrative courts can still drag on for more than a decade, with backlogs in the Southern Central Administrative Court taking up to five years to clear. In contrast, tax arbitration tribunals resolve matters in less than five months, now handling more than a third of all tax disputes filed in the country.